Income without the risk

I am an OAP with £30,000 to invest to give me a monthly income. I have not used my ISA allowance for this year. I don't have the nerve or the years for high-risk investments. What should I consider? C, Peterborough

Justin Modray Independent Financial Advisor at Chase de Vere Says: First ensure that you have sufficient emergency funds in your bank or building society account before investing your lump sum elsewhere. This is important as it will give you piece of mind knowing that cash is easily accessible if you need it.

Shop around for the best rate of interest on easy-access - see the tables on this site. Then consider taking a little risk (but not too much) with the rest of your money so you can look forward to a reasonable monthly income. A corporate bond fund might be a good choice and you could hold it within a ISA so the income is tax free. By picking a fund that invests mostly in good quality 'investment grade' bonds you should be able to generate income of around 6-7% annually.

As monthly income is important to you find a fund that pays out each month if possible. It is important to bear in mind that the investment is not guaranteed so it could fall in value - but there is a chance that it could rise as well.